Warning high interest card 39.9 APR

[debbiedebt]

This is to warn everyone of this extremely high interest rate. I received an email - today copied below:-

At Vanquis we think that more people should have the chance to have a credit if they want one. And that includes you - if your circumstances have recently changed, you've got little or no history, have had problems in the past, or just have a lower than average income.

All of our Visa cards come with:

- No annual fee
- Up to 56 days interest free on purchases
- Free additional cardholder
- Free fraud monitoring - we'll warn you of any suspicious activity on your account
- Chip & PIN technology for added security whenever you use your card
- Visa is widely accepted in the UK and abroad
- Convenient for paying online and over the phone
- Friendly UK call centres
- typical 39.9% APR

[marshall2k]

This card is not designed to be competitive on the APR front. It is meant for those that cannot get credit anywhere else due to perceived risk. Borrowing on it would be a bad move but using it and paying off every month will help someone with no/damaged credit history.

[SiuLoong]

In the same area are the Capital One 'Classic' card with an APR 34.9% and Barclaycard equivalent, also with a v high rate. The idea behind these cards is that they are available for people who would otherwise be refused credit.. i.e. bad or nonexistent credit rating. The high APR is because of the increased risk of these bad or unknown quantities. Whilst using a card like this to borrow money would be disastrous and never to be recommended, using it and paying off the full balance every month can get you started in terms of a credit rating and in time allow you to build a credit history that allows you to get better credit elsewhere.

Quite rightly people should be aware of the rates, and only spend on the card if it can be fully paid off...

[Paul_Herring]

Here we go again...

http://forums.moneysavingexpert.com/...78#post2155978

[sparkie45]

may be a bit thick but what does that mean in money terms



cheers sparkie45

[a11waysindebt]

No disrespect to any one,But people coming to the site that are new sometimes can't find old links concerning these issues.

I my self have been told sometimes "there are threads concerning this subject" and then get a link dated back to 2006.

[yorkie1980]

Originally Posted by Paul_Herring

Here we go again...

http://forums.moneysavingexpert.com/...78#post2155978

Debbiedebt, I've had Vanquis since June last year, have never paid a penny interest and even had a late payment charge refunded in full the only time I ever missed a payment.

As Paul_Herring says, this is a common theme, and using the search facility at the top of the page would have brought more recent posts to your attention.
It's good to be alert though and that you thought of sharing info with others

[jimbo26]

Originally Posted by sparkie45

may be a bit thick but what does that mean in money terms



cheers sparkie45

It means if you pay off the full balance each month you don't pay a bean in interest. However fi you don't you get stung for quite a bit, far more than the mainstream cards.

If you plan to pay off the card in full every month the interest rate is immaterial.

[yorkie1980]

Originally Posted by sparkie45

may be a bit thick but what does that mean in money terms



cheers sparkie45

Hi Sparky, this website has an example calculator showing repayments - http://www.whatsthecost.com/creditCard.aspx

I googled that site, so not sure how good it is, but hopefully it gives some idea.

The golden rule is though, that if you don't borrow on Credit Cards, then the interest rate is insignificant!! Pay them off in full each month!!

[yorkie1980]

Thanks jmbo26, you beat me to it!!

[sparkie45]

cheers for the link been offered one loads of times from capital one at 34.9 apr didnt understand what it was think i will leave it


cheers sparkie45

[neverdespairgirl]

Hi - you are right, this would be a very poor card if you were going to have a balance sitting on it.

But it does have other uses. Some people have a lot of trouble getting any credit at all - for example, they have no previous credit rating, they are young, they have had defaults etc in the past.

This card is therefore useful to them because they'll give it to almost anyone. It is much easier to get than most CCs. So if you get one, and pay it off every month, it helps you build a credit record, showing that the payments are made every month.

But with an APR like that, it shouldn't be used for borrowing at all, and ought to be paid off at once.

[MABLE]

If you pay the balance off each month and yes some people do that, then it could be a very useful card to hold. I myself do not have one because I have an A1 credit rating but some poorer members of society may find it beneficial if they want to build up their credit history or rating etc.

Also the apr quoted is alot cheaper than a door to door lender. So best not to knock it without looking at all the facts.